Accounting Information Systems
Accounting Information Systems
10th Edition
ISBN: 9781337619202
Author: Hall, James A.
Publisher: Cengage Learning,
Question
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Chapter 10, Problem 7P

a.

To determine

Draw an REA diagram for Company C to support the payroll process.

b.

To determine

Depict the cardinalities to association between entities in REA diagram of Company C.

c.

To determine

Identify the tables, keys and attributes required for implementation of REA model.

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Every 2 weeks, employees for a manufacturing firm submit their time cards to the supervisor, who reviews and approves them. They are the submitted to the payroll department. At that time, the human resources clerk also submits a personnel action to the payroll clerk. The payroll clerk enters the information from these source documents into the employee records and then adds the employee hours to a payroll register reflecting employee pay rates, deductions, and job classification. One copy of the payroll register, along with the time cards, is filed in the payroll department, and one copy is sent to the AP department.Next the payroll clerk sends the employee paychecks to the cash disbursements department. The checks are signed and distributed to the employees by the paymaster. The AP department prepares a cash disbursements voucher. A copy of the voucher and a copy of the payroll register are sent to the cash disbursements department and are then posted to the general ledger. The cash…
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